UPDATE: Stifel Nicolaus Downgrades MPG Office Trust to Sell on Tax Warning

Stifel Nicolaus downgraded its rating on MPG Office Trust (NYSE: MPG) from Hold to Sell. Stifel Nicolaus noted, "Management warned of a potential 10.84% combined tax rate (8.84% CA franchise or capital gains and a 2% federal tax) could apply to any assets MPG may sell or return to the lender should California not reinstate the ability for companies to use Net Operating Loss Carry Forwards to offset taxable gains. This applies to most, but not all, possible transaction structures. Hence, our downgrade to Sell." MPG Office Trust closed at $2.93 on Tuesday.